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In 1506 C.E. a Gondal tribal Chief named Bahauddin established a settlement namely Pindi Bahauddin, after his migration from Pindi Shahjahanian to this area. The town started growing in early 20th century near the ancient village named as Chak No.51, where Sikh, Hindu and Muslim businessmen and land owners came to settle. John Alam made the map of this chak, which became the center of this new town Pindi Bahauddin. later in 1920 because of famous grain market setup in this Chak No. 51, it was given name of Mandi-Bahauddin, in 1923 all the streets and roads were laid straight and wide. In 1924 Pindi-Bahauddin Railway station was given the name of Mandi Bahauddin railway station. In 1937 when Mandi-Bahauddin was town, it was given the status of a town committee and in 1941 it got the status of a Municipal Committee. In the master plan of reconstructing this town. In 1946, nine gates and the walls were retied around this town.